Permissioned DeFi platform Aave Arc gears up for launch

Aave Arc, a permissioned version of the popular DeFi lending platform Aave, is getting ready for its first deployment.

Fireblocks, an institutional custody firm, has made a proposal to Aave's governance forum for it to be the first whitelister for when it is deployed. As a whitelister, Fireblocks will play a key role in onboarding institutional investors to the protocol and it will act as a gatekeeper of sorts, ensuring that only whitelisted participants — who have gone through KYC processes — can get involved.


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As The Block has reported, Aave Arc will enable such whitelisted participants to take part in the permissioned lending and borrowing pool. Participants will only be able to borrow from and lend to other whitelisted participants. In theory, this is aimed at enabling companies that have more stringent requirements to get involved.

In the proposal, it lists the next steps as the governance deciding if it should approve Fireblocks as a whitelister in one or more deployments of Aave Arc and, assuming it gets accepted, the actual deployment of the protocol itself, along with onboarding of institutional investors.

Separately, Aave is working on a protocol for decentralized social media, upon which it hopes to launch a decentralized version of Twitter.

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Tim is the Editor-In-Chief of The Block. Prior to joining The Block, Tim was a news editor at Decrypt. He has earned a bachelor's degree in philosophy from the University of York and studied news journalism at Press Association Training. Follow him on X @Timccopeland.